Any questions? I wasn't even sure where the bathroom was back then, and we moved quickly to talk about what our game plan was to change the trajectory of the company, so far, so good, and that journey continues, and what we ended up doing, to kind of preface this presentation, is we targeted three things. One is we needed to fix our factories. Anybody here shareholders? Okay, so how many people here do not know what TSS does? How come? I'm teasing. I'm good. All right, so I'll make sure I give everybody an overview of what we do, but we needed to, so let me do that quickly, well, I'll do this in the presentation, all right, but we needed to focus on fixing our factory, building a demand-generation component of our business. When I say fix our factory, which is we assemble technology.
And we had a lack of leadership. We had a lack of processes. We had a lack of technology to help us make that work. So we immediately fixed that. We invested in a small amount of demand-generation skills and our team, the leadership team. And we also built a strategy to do two things: rebuild our relationship with our key customer partner and look for ways to expand our business outside of that relationship. And I'm going to spend some time talking about that this morning. So it's three things: fix the factory, work on demand gen, and build a strategic relationship with our existing customer and outside of that. So the usual forward-looking statements. I know you've read that. So let me get into the detail. What do we do? We do really three things. We do systems integration technology services. We rack integrate technology.
We take servers, put them into racks, cable them, label them, test them, load software, ship them to an end-user customer. We do that primarily for our key customer. We actually also do procurement services where we will buy technology, we'll integrate it, and send it to an end-user customer. We do that largely for our existing relationship with our key customer. And when we do that, you'll see financials that we leverage a relationship with our key customer for financing. And that's where our interest charges come in. You'll see that later in the presentation. We also integrate technology into modular data centers. Think about a 40-foot container. Daniel and I talk about that. You'll see on a ship. We put servers and racks, technology. I'm coached. We don't drop them in. We deliver them to a site. Okay?
Dropping in has a connotation that you're going to destroy everything on the inside. So we don't do that. So we deliver them to a facility. We actually prepare the facility, concrete, and the location with the end-user customer. We deliver the technology. And then we usually deploy a multi-year service agreement. So there is a little bit of recurring revenue in our business that's related to doing the maintenance of the facility. We don't do break fix of the technology in the facility. However, we do get into battery replacement, filter replacements, and sometimes doing repair on power supplies. That's ad hoc. But that's a really profitable, good part of our business, which we're betting on growing, and I'll explain further. So three things: rack integration, systems integration, the procurement services business, and also our modular data center business.
Our strengths, as we've heard from customers and user customers, as well as our key customer partner, is our flexibility. We can change on a dime. Technology is changing as we're standing here today, so it's really important for us to be flexible, and when we're working with a key customer, what if there's a change in cabling or a special fiber optic wire that we're working on, and how do we do that, and we do that really quickly. Our partnering skills, IMEX, Dell, key customer. We needed to partner better, so I talked about fixing the factory. We also had to repair our relationship, which kind of fell off the cliff, and we did that, and I'll spend a little bit of time talking about that, and that's an ongoing process. You don't just fix it and move on. It's a constant relationship-building and lasting process.
Our ability to execute, to get the job done, and to deliver with speed. We used to take weeks to get a product out the back door. Now we can do it in less than a day. So if you think about a revenue recognition opportunity for your partner, it's the third month of a quarter, and they're looking to get revenue recognition on a transaction, they're not going to bring it to you to go integrate it if it's going to take too long before the end of the quarter. So we can get product out the door. And that was a massive improvement in what we do in the factory. We say we simplify the complex. You folks know what's going on in the industry. It's insane. It's changing all the time. So it's complex, and we try to simplify it to get things done.
And then we work on quality and innovative ways to do what we do. And the last piece is a customer benefit. It's time to value. You're not building a car in your garage at your home. We build it for you and deliver you the end-user product. So we do it fast with quality, and it gets to the customer so they get faster time to value. What are our offerings? I talked a little bit about our systems integration business. There's two sides of the slide: systems integration and our facility services. We use the term facility services because we combine the modular data center business with the ongoing maintenance and support. We call that facility services. But if you go to the left side, we've deployed a lot of servers, stacked, cabled, labeled over the years. We have 10,000 client devices that we've delivered.
Our procurement services business, we figure last year had an end-user value of $123 million. If you look at our last year return, we did, I think, $36 million of our $54 million was in procurement services. Okay? We announced in Q2, when we did our earnings call, kind of put that into perspective. In Q2, in our earnings, we said we'd do more than $50 million in Q3. Q3 is done. We announced Q3 on November 14th. You'll see that you'll see the results then. Okay? I've highlighted on the bottom of the left side in bold two things: on-site rack integration. Everything I've shared so far is that what we do inside our factory in Round Rock, Texas, which just happens to be up the road from our key customer.
On-site integration is when you go to a customer facility, they will get the servers, they will get the racks, they'll get the cables, they get all the stuff, and somebody's got to put it together. There are people who are out there doing that for technology that's non-Dell. You know who they are. One's in the news as we speak. Okay? They rely on third-party partners to go deploy that technology, and in some cases, our partner will ship directly to the end-user, and we've done some on-site work. That's a business opportunity for us to develop the talent and to go do more on-site integration besides what we do in our factory, so that's a growth area that we're focusing in on that not only with our current customer, but takes us outside of our current customer.
Data center equipment moves, as you think about a rack technology, especially storage systems. I'm going to move it from one facility to another. I'm going to move from Chicago to New York or vice versa. Or I'm going to move it from one end of the building to another end of the building. Our partner used to do that. They've handed that business over to us. We work with them to go take that on. So that's a growth opportunity for us with a new service offering in our current business that goes beyond what we used to do and also take it outside of our current relationship with our current customer. So think about that.
We can now do on-site rack integration, leveraging our skills that we've been using for years and building the teams to go do that, and also help out on data center moves. On the right-hand side is a little bit more detail on modular data centers. We do the maintenance. We do deployment. Sometimes we do equipment sales in the process of making those modules. I'm betting that the long pole in the tent on the right side is time to get the container, time to get the power units. It used to be a while ago, not too long ago, it was time to get GPUs. So the availability of a server with GPUs from you know who took some time. The long pole right now is the container. They could be anywhere from eight months to 12 months.
So that business, in order for us to benefit from that business, we bet on demand gen/sales talent to go help us with our current customer to go drive demand that'll pay off in 2025 and 2026 revenue. And that's the play that we've invested in this year. Okay? Market opportunity is who in here doesn't think the AI market opportunity is significant? Now, I've been coached a little bit to define what $88 billion really means. Big, large, huge. You break that down in the AI world, we are, I think, this is, and depending on who you talk to, this is my opinion, and everybody has an opinion. My opinion, this is bigger than the internet. And what's happening is going to last for a while.
And what we see, the excitement over now, are the early adopters, if you will, or the people that are scrambling to get their hands on the technology to go do training that leads to tuning, that leads to inferencing. And when that all transcends, you're going to see enterprise demand kick in. Large enterprise, medium enterprise. That hasn't kicked in yet. So this has got a long tail to it, in my opinion. Okay? So I think we're positioned well, and we're going to talk a little bit about that as I go through this, to benefit from what's happening in AI. It's already happening. Go look at what's happening for us. We are benefiting from the delivery and the cooperation that we have with our key customer to go deliver AI solutions.
So our statement, so to speak, is we sit at the intersection of advanced computing and AI. We integrate it. That's our position in the market. So the opportunity we think is pretty big. Now, on cloud spending, we all know we can pick a number. Cloud transactions now. I can also say that it's kind of an interesting market, that in the AI world, when you talk about what I was talking about from training to tuning to inferencing, a large percentage of the data that enterprises want to control, they expect to keep in their own enterprise. Okay? They want it on-prem, which is also another opportunity for us to drive work with our key customers to drive the solutions that they're selling. And the last is the edge business. I mean, define the edge. I had to go Wikipedia to find out what edge really meant.
It's pretty much anything out at the edge. Pick it. It's big. Okay? So that's my tech term for the day. Okay. Our strategy is be at the right place at the right time. I can promise you that when I joined on November 14th, and I had this conversation with Danny four months ago when we were interviewing Danny to become our new CFO, that, "Oh yeah, we had the visibility. I knew November 14th of 2022 that March of 2024, the AI world was going to kick in and demand was going to go off the charts." You kidding me? I didn't even know what AI was back then, let alone what we did in the factory. So here we are. Okay?
We're the beneficiaries being at the right place at the right time, being flexible, understanding how to handle a complex, making sure that we've done the right improvements in our factory to handle the demand load, the complexity of what's going on, and frankly, adapt to the future. Right now, we are facing a power issue. Power to the facility. If anybody's done their homework on TSS, you know that we made some announcements about it, a move to take advantage of the power. We're getting a little bit more space in that decision, factory space, but we're doing it largely to get more power. It'll take us two years in our current facility to upgrade from 2.7 MW to what we need. We can't wait two years. 88 kW of rack today will soon become over 300.
How do you deal with that if you don't make a bet on the future? That's what we're doing. So we're at the right place at the right time. We're focusing on our ability to drive demand. We have got to execute to go drive demand with our customer and outside of our customer. And I'll talk about that a little bit. Maintain an intense second column, maintain an intense focus on customer satisfaction, profitable growth. There isn't anything we do. You look at our balance sheets, clean. We have no debt. We've talked about bringing on some debt to help us grow. We'll take questions on that. But we made it very specific that we're not going to go issue stock and dilute people. That's not our game plan. And we want to have a close relationship with our OEM customer partner. And that's an ongoing event.
We're proud of that. Deliver operational excellence, which is we now are ISO certified in our factory. If we can't do it and build it and get it out the door with quality where there aren't any complaints, we're done. We could sell all day long. It doesn't matter. We have got to focus on operational excellence and enhance our capabilities, which we're working on at the new factory. Pursue strategic partnerships outside of what we have. Our current customer, candidly, would like that to happen, but not too much. All right? At the same time, in our factory, what we do with our current operation is we might wall off a portion of our new facility to do additional work for some other partnership. That's not our game plan right at the moment. It's a potential.
But if we were to have a factory with a new partner, we'd probably do that. We wouldn't probably do it. We would absolutely do that somewhere else. But those partnerships I'm talking about can be on-site integration opportunities. It could be data center move opportunities and opportunities for us to become a services partner to do intra-rack cabling. Okay? But we're exploring all that. So investor highlight. I mean, I get asked, Danny gets asked often, "What's the game plan? Why should I?" I mean, I remember a year and a half ago, an investor in New York looked me in the eye and he said, "You got to figure out a way to make people want to buy into your company." Well, I said, "Okay.
We'll get there, but we've got to fix our operational." So I kind of look at this like, we're in a football season, right? Baseball, if you want to talk about that. But you also have to understand that let's take baseball. It's not done yet. Nobody's counting the ring. Go win the next game. So our focus is we're getting a lot of nice attention for a job well done, which is great, but we're not done. We're mid-season at all. Okay? We've got a lot of upside left in our view to go drive this business and then go execute. If we don't execute, it doesn't matter. So that's our focus. Win the next game. Now, you look at the demand, the market's hot. AI's hot. We have some great customers. Our end-user customers, I can't talk about because they're end-user customers of our customer.
I'd like to be able to talk about them. And by the way, now, I'm not going to tell you any secrets. But now, in our facility down the street from our key customer, we do probably five or six tours a week. Customer goes to our customer, wants to see what's going on with the rack technology and server technology. They come to our site. We walk with them. We talk with them. They ask questions. Danny, our Chief Financial Officer, myself. And we learn a lot in a 20-minute, half-hour, 45-minute factory tour. It's a great thing. Everybody wins. The customer wins. We win. Our key customer wins. I mean, it's a wonderful thing. So when we move, we're not moving very far for obvious reasons. So we got high demand offerings. Our systems integration business now, because of AI, is doing well.
I'm betting on the future with, to a degree, on our modular data center business. We have multiple growth levers, which we've talked about with our existing customer and outside of our customer. And so far, so good. The attractive economics year over year. For those of you that are going to join us on November 14th, we look forward to having you there. Okay. I'd like to bring up Danny Chism, our CFO, to take you through some of the numbers. We'll hand it off and close up.
Thanks, sir. So I want to make sure we leave time for questions at the end as well. So appreciate you guys' interest. Bottom line, up and to the right. Mic drop. All right. It played better in my head. Anyway, annual revenue, seriously, up and to the right, 78% growth year over year, last year to this year. Operating income, Adjusted EBITDA, same thing. When you start looking at net income, EPS, you're seeing the exact same story. One of the things we're really proud of as well. Well, before I get to the balance sheet, this is just a view of the quarters as well, or the year to date. So I didn't have on this slide the 2024. Obviously, it's not complete, so trying to help you understand what will 2024 look like.
The dark blue here, again, up and to the right. It's giving you the view of where we are for the first half of the year of 2024. So you can see it's not only growing but accelerating, particularly when you get Adjusted EBITDA. The adjusted is stock comp. So it's your traditional definition of EBITDA plus stock comp. Quick look at balance sheet. So as Darryll mentioned, we're debt-free. If you look at the cash balance, you can go, "Holy cow, what happened? You had $20 million in cash. You now have $11 million." Our procurement business, we generally have to get paid prior to having to pay our vendors. So really, the way you need to look at that is look at the net working capital.
So if you take into account the current liabilities, current assets, we actually have a net $1 million improvement because my AP went down when my cash went down as well. That's really what you're seeing there. But the debt-free, that will change shortly. We anticipate spending about $25 million-$30 million for CapEx in the new facility that we're going into. That's one. In structuring our long-term arrangement, we've sought creative ways to make sure that we are protecting ourselves from exposure for any financial commitments that we've made so that we get a comfort level that we will recapture that over the term of that agreement. With that, I know we're getting close to the end, so I'll go ahead and wrap. You're looking at us already.
This one was one that we recently were recognized by one of our primary partners for the best Deployment Partner of the Year. Pretty proud of that. That's a lot of hard work from a couple of years ago to really needing to clean up the factory. We got ISO certified. We really cleaned it up. Have become a true partner to folks that we work with. So we're pretty proud of that. And that's the closing. So again, we've only got about four minutes left in our allotted time. So I wanted to be able to open it up for Q&A as well.
What's the time to move to the new facility and the expectations for players to kind of get out of the money?
Yes. What's the timing of getting in the new facility?
Yeah.
So the question was timing of getting in the new facility and I think the cost of that. Right? So that's the $25 million-$30 million of CapEx that I spoke about. We would anticipate our plan is to finance that with bank debt. We've had really constructive conversations with both our existing bank, which I think will bear fruit. And I've done business with a fair number of other banks who are, quite honestly, pretty anxious to get their foot in the door. So I think we've got backup plans if they needed a partner bank to come in with them. From timing, I think we've talked about the early 2025 as the view.
We've been working on this for some time, anticipating is kind of more along the lines if we want to continue to be a leader and a pioneer in this business space, we're going to have a choice. You can sit there and don't have enough power, you don't have enough space, and just go out of business, so that's not our plan.
I think you got a question here.
Headcount, year-to-year growth in the headcount.
I'm sorry?
Yeah. Year-to-year growth in the headcount.
Yeah. The question was, what's the year-to-year growth in the headcount? You can share as much as you want.
I'm more conservative than he is.
This is public forum. We don't have to worry about FD. This will be on my side.
We've quoted in the past. We had 83, 84 people. We've grown. We've doubled. More than doubled. The next question is, have you tripled, which we've been asked before, and we've more than doubled.
What's your objection to selling stock?
Really, none. Other than right now, we just think it's better to go the other route.
Sir.
There's the answer to that. All the facts are friendly. We'll do whatever's right at the time. Right now, that's just not the way we want to go.
I would add to that. We've got really good relationships with our bank, and we think if we can finance what we need to do through bank debt, then I'm not diluting shareholders. I know it's going to shock you that a CFO or CEO thinks their stock is undervalued. Frankly, if I went to market with stock today, I think we would be going to market with stock that's undervalued, so why would I dilute you today? Why would we dilute you when we think there's room to run? That's really kind of the from my perspective.
Yeah. I'm here.
So with Dell sort of announcing that you are the best partner at this point, I mean, is there any maybe you can't speak to it directly, but I might rephrase it also, but have there been discussions with maybe having a more exclusive partnership? And have there been talks with other maybe a second key customer along the background?
You want to take that.
Yeah. I think the answer go ahead.
I may want to repeat the question.
I think the question was, have we had any conversations with our existing partner to be more exclusive, and would we entertain a new partnership beyond what we have today?
Because right now, there's a primary key customer.
Yeah. The answer to the second one's easy. The answer is yes. Okay? We're anticipating and we're looking for that. The answer to the first one, after 10 years of working in that company, and they're great people, and it's a great company, and it's relationship-built, that's just not the way it works. I mean, being exclusive is difficult, and like a lot of companies, they always want number two, number one, and they want to have alternatives. We understand that, so that just makes us be better so that we don't give number two if we want to be number one an opportunity to be number one, so we're good with where it's at for the time being.
We got maybe.
Thanks, Charles.
Time for one quick question.
Yeah. It's pretty well known that you guys, Dell has been competing with Super Micro at your first AI-related program. How has the competition? How are you guys doing against Super Micro? It came out today that Super Micro had their auditor just quit. So I was curious to hear about your thoughts about that.
Yeah. The question is how we're doing out in the market versus Super Micro or the competition that our partner is seeing for that.
Dell is uniquely positioned in a marketplace providing a solution. That's technology, that's service support, integration, and delivery. We're taking advantage of that, and we're a part of that. On the other side, it's unfortunate. I don't wish anybody ill will. There are some conversations about, well, that might be opportunity for our existing relationship. We hope so. But I can't speak to anything specific. It'll come out over time, and you'll see market share data probably from our partner. Okay?
Appreciate you guys' time. We have run about 30 seconds over, and they're playing the music on us.
We'll be around tonight if you guys want to visit in one-on-ones as well. I think our 3:30 P.M. got canceled. So if you're looking for a quick date.
Thank you.